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I can't speak for Google, but Amazon doesn't do it. It took 41 hours to upload my collection (not counting podcasts, which for whatever absurd reason are not supported) to Cloud Player and I have a 15mbps fios connection. If I had a regular cable modem or whatever I probably wouldn't have bothered.

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Whoa, that quiet ridiculous. Why wouldn't they hash/check the files before ? Is there any good reason ?

It's probably some sort of tactical play to keep the record labels from shutting them down.

You are probably right, though they should just call it "distributed hash compression technology for super-fast uploads", rather than "if we already have a copy of that song, it doesn't need to be re-uploaded".

http://en.wikipedia.org/wiki/UMG_v._MP3.com

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